Morgan Stanley

Morgan Stanley Calls for Redemption of 8.03% Capital Units

Jan 26, 2007

New York —

 

Morgan Stanley (NYSE: MS) and Morgan Stanley Finance plc announced today that they have called for redemption on February 28, 2007 all of their outstanding 8.03% Capital Units (CUSIP 616906AG8; NYSE symbol MSIL 17).

The 8.03% Capital Units consist of $65,810,000 aggregate outstanding principal amount of 8.03% Subordinated Debentures due February 28, 2017 of Morgan Stanley Finance plc, and 65,810 related purchase contracts of Morgan Stanley.  The 8.03% Subordinated Debentures are guaranteed by Morgan Stanley.

The redemption price for the 8.03% Capital Units will be $1,026.77 for each $1,000.00 principal amount of the Subordinated Debentures and $1.00 for each Purchase Contract.  Interest on the debentures will be paid in the normal manner on the February 28 interest payment date to holders of record as of February 13 and will not be included in the redemption price.  Notices of redemption will be delivered to holders of record as of January 25, 2007.  The Redemption Agent is The Bank of New York, 4 New York Plaza, 15th Floor, New York, NY 10004.  Holders of the Capital Units may contact the Redemption Agent at (800) 254-2826.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

Contact: Corporate Treasury, Jai Sooklal, 212.762.3920

              Media Relations, Mark Lake, 212.761.0814